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Recommendation on 7dream.Com

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Recommendation on 7dream.com

Although the e-businesses are just online shopping sites of 7-Eleven Japan, its original supply chain must be affected.

7dream.com can enjoy the competitive advantages in Japanese e-commerce by using their own company’s information system. It allows the company to reduce the response time and increase the efficiency of information flow from suppliers to end users in order to meet the their fluctuation demand. Especially during the time of sharing information online, additional cost in maintaining the high responsiveness may increase as 7-Eleven Japan needs to build extra information infrastructure. Or company may need to out-source the data to other companies in order to get faster and more accurate data analyze of customer needs and wants from the big data. This results in adding more parties in its original supply chain.

Also, as the e-businesses can use existing delivery network which has high responsiveness that allows it to enjoy low transportation cost. Response time for customers is probably really low as same-day delivery is possible for items stored locally in the 7-Eleven. Customers can reduce the delivery cost by picking up the merchandizes in store. The company may have potential in saving the operating cost. Yet, it is much easier to offer larger product variety in online that if customers order lots of small single items to their home in different time, transportation cost may increase even 7-Eleven Japan has distribution centers to deal with it. The company may need to set up another supply chain system to deal with similar situations. For example, trade-off between the lead time and transportation cost, gathering the items together within a period of time.

Inventory management in Seven Elven Japan is in high efficiency that it tends to make store delivery three times a day rather than keeping extra

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